Sai Swami Metals & Alloys IPO: Review, Valuation, Date & GMP

Sai Swami Metals and Alloys Pvt. Ltd. IPO  - Complete Overview

Established in 2022, Sai Swami Metals and Alloys Pvt. Ltd. actively trades and markets a comprehensive range of stainless steel products to meet various customer demands. 

Its product lineup includes a diverse range of kitchenware such as Dinner Sets, S.S. Casseroles, S.S. Multi Kadai, S.S. Water Bottles, Stainless Steel Sheets, Stainless Steel Circles, and various utensils. 

Additionally, it engages in trading basic raw materials like S.S. Patta, S.S. Sheet, S.S. Coil, S.S. Scrap, S.S. Pipe, M.S. Round (Mild Steel Round), and M.S. beam.

The company, along with its two subsidiaries, Bhagat Marketing Private Limited and Dhruvish Metals LLP, specializes in trading and marketing stainless steel kitchenware products under the distinguished brand "DOLPHIN." 

With a network of 6 Distributors and over 150 subdealers, stockists, retailers, and strategic alliances, Sai Swami Metals and Alloys ensures widespread availability of its products across India.

 

Sai Swami Metals and Alloys Pvt. Ltd. IPO Overview

Sai Swami Metals and Alloys Pvt. Ltd. IPO date is slated to be open for subscription from April 30, 2024, to May 3, 2024. This BSE SME IPO follows a Fixed Price Issue IPO.

Sai Swami Metals and Alloys Pvt. Ltd. IPO price is fixed in the range of at Rs.60 per share. 

The total issue size of this IPO amounts to Rs.15.00 Cr. The company has allocated shares 50% to retail investors, 50% to other investors.

 

 

Company Financial

Compared to the financial year ending Dec 31, 2023, and March 31, 2023, Sai Swami Metals and Alloys Pvt. Ltd. has seen growth in total assets, net worth, and total revenue. The profit after tax and total borrowing has also increased.

Amount in Lakhs

Period	31 Dec 2023	31 Mar 2023
Total Assets	2,617.31	2,583.16
Total Revenue	3,333.86	626.76
PAT	179.52	3.83
Net worth	664.47	35.32
Reserve & Surplus	252.70	34.32
Total Borrowings	743.16	610.23

 

Revenue Break-up of Sai Swami Metals and Alloys Limited

(Amount in Lakhs)

Products	31 Dec 2023	31 Mar 2023
S.S. Scraps	2,153.97	626.76
S.S. Sheets	196.62	-
S.S. Patta Patti & Pipe	184.97	-
Molly & Nickel metal scrap	58.42	-
S.S. Utensils	281.73	-
Nickel Alloy scrap	134.85	-
S. S. Round	73.78	-
MS Channel Angle	49.49	-
MS Round	18.86	-
Steel Coils	18.30	-
S.S. Angle	15.46	-
Beam	9.11	-
MS Pipe	14.32	-
Ms Scrap	120.35	-
Copper Wound transformer	3.60	-
Total	3,333.86	626.76

 

Geography-wise Revenue Break up

(Amount in Lakhs)

State	31 Dec 2023	31 Mar 2023
Gujarat	3,278.35	626.76
Rajasthan	23.15	-
Madhya Pradesh	16.27	-
Maharashtra	5.36	-
Delhi	5.01	-
Others	5.72	-
Total	3,333.86	626.76

 

 

The Objective of the Issue

The company will use the Fresh Issue to utilize the following objectives:

1. To Meet Incremental Working Capital Requirements.

2. To Invest in Subsidiary Company.

3. To Purchase of Machineries.

4. General Corporate Purpose.

 

Peers of Sai Swami Metals and Alloys Pvt. Ltd. IPO

Name of the Company	Face Value (Rs)	EPS (Rs)	P/E Ratio
Sai Swami Metals and Alloys Limited	10.00	5.29	11.34
TTK Prestige	1.00	12.25	60.51

 

Evaluation

The IPO is priced within the range of Rs.60 per share.

Evaluation of P/E Ratio

• Considering the FY23 EPS of Rs 5.29 from the last year, the resulting P/E ratio is 11.34x.

• Taking into account the weighted EPS of Rs 38.28 for the last three years, the P/E ratio amounts to 1.56x.

Comparative Analysis with Listed Peers

• The industry's average P/E is 60.51x.

As a result, the IPO price range, with a P/E ratio ranging from 11.34x to 1.56x, seems fully priced to the industry average of 60.51x.

 

IPO's Strengths 

• Seasoned Promoter and Management Team with extensive experience.

• Continuous emphasis on maintaining high-quality standards.

• Diverse assortment of kitchenware products.

• Well-established sales and distribution network.

 

IPO's Weaknesses 

• The company's current revenue heavily relies on a single product, namely S.S. Scraps.

• Increased competition from companies and local firms offering similar products may negatively affect the company's sales.

• There are ongoing legal proceedings against the promoter and group companies.

• The steel industry's demand and pricing are volatile, subject to the cyclical nature of the industries it serves.

• A significant portion of the company's revenue is generated from operations in the Gujarat Region, making it vulnerable to adverse developments in that area.

• The company must obtain and renew various registrations, licenses, and permits from government and regulatory authorities.

• Operating in a highly competitive industry poses challenges for the company.

 

IPO GMP Today 

The Latest GMP of Sai Swami Metals and Alloys Pvt. Ltd. is Rs. 50.

 

 

Sai Swami Metals and Alloys Pvt. Ltd. IPO timetable (Tentative)

Sai Swami Metals and Alloys Pvt. Ltd. IPO is scheduled from April 30 to May 3, 2024, with allotment on May 6, refund initiation on May 7, and listing on May 8, 2024.

Events	Date
IPO Opening Date	April 30, 2024
IPO Closing Date	May 3, 2024
IPO Allotment Date	May 6, 2024
Refund Initiation	May 7, 2024
IPO Listing Date	May 8, 2024

 

Sai Swami Metals and Alloys Pvt. Ltd. IPO Details 

Sai Swami Metals and Alloys Pvt. Ltd. IPO, with a face value of Rs.10 per share, opens on April 30 and closes on May 3, 2024, offering 2,500,000 shares at Rs.60 per share, with a lot size of 2000 shares, aiming to raise Rs.15.00 Cr, and will be listed on BSE SME.

IPO Opening & Closing Date	April 30, 2024 to May 3, 2024
Face Value	Rs. 10 per share
Issue Price	Rs. 60 per share
Lot Size	2000 Shares
Price of 1 lot	Rs. 120,000
Issue Size	2,500,000 Shares (aggregating up to ₹15.00 Cr)
Fresh issue	2,500,000 Shares (aggregating up to Rs.15.00 Cr)
Listing at	BSE SME
Issue Type	Fixed Price Issue IPO
Registrar	Bigshare Services Pvt Ltd

 

Sai Swami Metals and Alloys Pvt. Ltd. IPO Lot Details 

For Sai Swami Metals and Alloys Pvt. Ltd. IPO, the retail investor minimum and maximum lot investments are both 1 lot (2000 shares) at Rs.120,000 while for HNI investors, the minimum investment is 2 lots (4000 shares) at Rs.240,000.

Minimum Lot Investment (Retail)	1 lot
Maximum Lot Investment (Retail)	1 lot
Minimum Lot Investment (HNI)	2 lot

 

Sai Swami Metals and Alloys Pvt. Ltd. IPO Reservation 

Other Investors share Portion	50%
Retail Investors share Portion	50%

 

Promoters and Management of Sai Swami Metals and Alloys Pvt. Ltd.

Mr. Nipun Anantlal Bhaga

Pre-issue Promoter shareholding	99.88%
Post-issue Promoter shareholding	62.15%

 

 

Sai Swami Metals and Alloys Pvt. Ltd. IPO Lead Managers

• Swastika Investmart Ltd 

 

Dividend Policy

The Company has not paid any dividend in last three financial years.

 

Conclusion

The upcoming IPO offers an exciting opportunity for investors to delve into the stainless steel and kitchenware products sector. With a diverse range of kitchenware products and a state-of-the-art manufacturing facility, the company showcases promising financial performance. Before investing in this IPO, investors are advised to thoroughly evaluate all factors to maximize potential gains.

 

Finowings IPO Analysis

Hope you enjoyed the Finowings IPO Analysis. We tried our best to give every required detail about the company that you should know before applying to the IPO. 

You must consult your financial advisor before making any financial decisions. 

To Apply for the IPO, Click Here.

 

To Read the Prospectus of the Company Click Here to Download the DRHP.

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